Sunday, September 13, 2009

Years ago, after several months of working in the company, I came to know a new friend from the company I worked in. All of the sudden, he eagerly want to introduce his sister to me. Wow, I thought this is the chance of getting to know some girl, and I am the lucky guy to have a date. She made an appointment with me in a nice cafe in the town at night (What a bold girl!). I was excited and dress-up well to meet this girl. So, I made a call to her, and then we eventually recognized each other in the cafe. She dressed up neatly with her office coat, and was pretty with long hairs.

However, after exchanging each other company name card, I was sadden to see that she is an insurance agent. So, you guess it, we talked about the insurance the whole night. Though a little bit sad, however I learned some stuff from her about insurance protection.

We ought to buy insurance to protect ourselves in the event of Total Permanent Disability (loss of limbs, fingers, and so on...) or Death. This is at least to repay back to your parents or love one, in case you are gone from this world.

You buy insurance as a form of forced savings, at least after some period of years, you could take back the cash value of the insurance (although it will not be a full amount, as some charges of insurance fee is deducted from the premium).

There will be a chance of investment growth as in investment linked insurance (as you could chose which type of units trust investment to invest).

Insurance is deductible item in your income tax (as in my country). Instead of paying more tax, deduct it.

The younger you are, the premium will be lower compare to those 5year or 10 years older than you.

You buy insurance to protect your car, in case of loss, how come you do not buy one to protect your own self.

Finally, after her constant persuasion, which somehow make logical sense to me, I bought a $100,000 insurance coverage from her, and put my father and mother as the beneficiary of this plan in case something happens to me.

Do you have any of these insurance experience to share? Tell me what do you know about insurance and what makes you want to buy?

4 comments:

Insurance indeed important in financial planning. One need a medical card insurance for your self and a life insurance that protect your family if you are in trouble. I just bought my medical card and are searching for life insurance. Any recommendation?